This paper models the behavior of water-using producers who have a choice between procuring high quality water and procuring low quality water that they themselves will upgrade to acceptable quality. Thus, the question addressed is that of gauging internal producer adjustments as regards using water of varying qualities rather than the more common issue of producer response to imposed effluent standards. An illustrative linear programming example depicts cost minimization for two producers subject to output, water input natural endowment, water reuse and input/output constraints covering two distinct water qualities. Parameterization with dummy data permits examining the producers' trade-off between high and low quality water usage under various hypotheses. It is demonstrated, for example, that upgrading lower quality water to be higher quality and the opposite activity of diverting high quality to low quality uses are mutually exclusive events.